Arch Resources Inc (ARCH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARCH - US03940R1077 - Common Stock
134.83 USD
+0.94 (+0.7%)
133.13 USD
-1.7 (-1.26%)
We assign a fundamental rating of 6 out of 10 to ARCH. ARCH was compared to 156 industry peers in the Metals & Mining industry. ARCH gets an excellent profitability rating and is at the same time showing great financial health properties. ARCH is cheap, but on the other hand it scores bad on growth. This makes ARCH very considerable for value investing!
1. Profitability
1.1 Basic Checks
- ARCH had positive earnings in the past year.
- ARCH had a positive operating cash flow in the past year.
- ARCH had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years ARCH had a positive operating cash flow.
1.2 Ratios
- ARCH's Return On Assets of 7.57% is amongst the best of the industry. ARCH outperforms 80.95% of its industry peers.
- ARCH's Return On Equity of 12.43% is amongst the best of the industry. ARCH outperforms 80.95% of its industry peers.
- With an excellent Return On Invested Capital value of 8.85%, ARCH belongs to the best of the industry, outperforming 80.27% of the companies in the same industry.
- ARCH had an Average Return On Invested Capital over the past 3 years of 29.63%. This is significantly above the industry average of 10.26%.
- The last Return On Invested Capital (8.85%) for ARCH is well below the 3 year average (29.63%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROIC | 8.85% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of ARCH (6.69%) is better than 75.51% of its industry peers.
- In the last couple of years the Profit Margin of ARCH has grown nicely.
- ARCH's Operating Margin of 7.76% is fine compared to the rest of the industry. ARCH outperforms 62.59% of its industry peers.
- In the last couple of years the Operating Margin of ARCH has grown nicely.
- ARCH has a Gross Margin (17.11%) which is comparable to the rest of the industry.
- ARCH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% |
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARCH is creating value.
- The number of shares outstanding for ARCH has been increased compared to 1 year ago.
- The debt/assets ratio for ARCH has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.29 indicates that ARCH is not in any danger for bankruptcy at the moment.
- ARCH's Altman-Z score of 4.29 is fine compared to the rest of the industry. ARCH outperforms 65.99% of its industry peers.
- There is no outstanding debt for ARCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.79
WACC11.21%
2.3 Liquidity
- ARCH has a Current Ratio of 2.01. This indicates that ARCH is financially healthy and has no problem in meeting its short term obligations.
- ARCH has a Current ratio (2.01) which is in line with its industry peers.
- A Quick Ratio of 1.41 indicates that ARCH should not have too much problems paying its short term obligations.
- ARCH has a Quick ratio (1.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- The earnings per share for ARCH have decreased strongly by -64.17% in the last year.
- The Earnings Per Share has been growing by 12.55% on average over the past years. This is quite good.
- ARCH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.03%.
- The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
3.2 Future
- Based on estimates for the next years, ARCH will show a decrease in Earnings Per Share. The EPS will decrease by -5.93% on average per year.
- The Revenue is expected to decrease by -7.19% on average over the next years.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.13, the valuation of ARCH can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of ARCH indicates a somewhat cheap valuation: ARCH is cheaper than 79.59% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. ARCH is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 6.77, which indicates a rather cheap valuation of ARCH.
- ARCH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARCH is cheaper than 89.12% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ARCH to the average of the S&P500 Index (24.29), we can say ARCH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARCH is valued a bit cheaper than 77.55% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ARCH is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
- The excellent profitability rating of ARCH may justify a higher PE ratio.
- A cheap valuation may be justified as ARCH's earnings are expected to decrease with -5.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.74%, ARCH is not a good candidate for dividend investing.
- ARCH's Dividend Yield is a higher than the industry average which is at 0.96.
- With a Dividend Yield of 0.74, ARCH pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
- On average, the dividend of ARCH grows each year by 47.85%, which is quite nice.
- ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 50.86% of the earnings are spent on dividend by ARCH. This is a bit on the high side, but may be sustainable.
- ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
134.83
+0.94 (+0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners99.38%
Inst Owner Change0%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Revenue(TTM)2.68B
Net Income(TTM)179.45M
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 | ||
| P/S | 0.91 | ||
| P/FCF | 11.58 | ||
| P/OCF | 6.2 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROCE | 10.52% | ||
| ROIC | 8.85% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 10.16% | ||
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% | ||
| FCFM | 7.87% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 117.1% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.14% | ||
| Profit Quality | 117.55% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.29 |
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%
Arch Resources Inc / ARCH FAQ
What is the fundamental rating for ARCH stock?
ChartMill assigns a fundamental rating of 6 / 10 to ARCH.
Can you provide the valuation status for Arch Resources Inc?
ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.
How profitable is Arch Resources Inc (ARCH) stock?
Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.
What are the PE and PB ratios of Arch Resources Inc (ARCH) stock?
The Price/Earnings (PE) ratio for Arch Resources Inc (ARCH) is 13.13 and the Price/Book (PB) ratio is 1.69.
How sustainable is the dividend of Arch Resources Inc (ARCH) stock?
The dividend rating of Arch Resources Inc (ARCH) is 3 / 10 and the dividend payout ratio is 50.86%.